(UNDATED) - The U.S. Department of Health and Human services is taking a critical look at Indiana's new law that effectively shuts off Medicaid funding to Planned Parenthood of Indiana and other health care organizations that provide abortion services.

An unnamed official with the Centers for Medicare and Medicaid services issued a statement stating, "Federal law prohibits Federal Medicaid dollars from being spent on abortion services.

Medicaid does not allow states to stop beneficiaries from getting care they need - like cancer screenings and preventive care - because their provider offers certain other services.

We are reviewing this particular situation and situations in other states."

PPIN President Betty Cockrum says that is the point they intend to make in federal court next month.

The Medicaid funding Planned Parenthood receives is designated for the healthcare services of low-income women.

Cockrum says that funding never has been used for abortion services according to federal law.